Ok I know what your thinking...not another property thread
Me and my partner live in North Adelaide, which is an awesome suburb to live in. Close to everything, good culture etc etc. We pay $220 per week for a 2 bedroom apartment. While not huge it is all we need and we are happy with it.
I know for a fact that an apartment in the same complex just sold for $250k, meaning that rent of 220pw would not cover the mortage.
my theory is this:
over the long term (ie the rest of my life), it seems i would be better off renting a property at say 75% of what it would cost to pay off the mortgage. So as our income rises, we could move into more expensive places, providing the rent is less than what the mortage would be.
On top of that you get to live in a better area than if you were paying the same amount off a mortage. in fact for us personally we probably couldnt even own any house paying only 220 a week
then with that extra 25% that I would pay if I had a mortage plus what you would pay in maintenance/body corp etc, invest into shares, even bluechips with a solid div yield, and in the long run I would end up with a better investment than if I bought a property.
The cons of this are never having a secure place to live, as there is always the threat of having to move.
I think it also depends on your long term view of property prices. If property prices appreciated as they have in the last 10 yrs then property would prob be a better investment, but I don't think it will keep appreciating at such a rate, and a slowing has already been shown.
Are there any ASFers out there who rent for this reason, or do you all own/aspire to own property?
What do current property holders think of this strategy? Assuming my situation not your own if you bought years ago. (Tech/A i would like to hear your comments as I know you are involved with property).